# Heat pump vs. electric furnace and AC on Kentucky Power rates (KY)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft electrically heated home on Kentucky Power electricity rates in Kentucky that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $16,300 less than a new furnace and AC over 15 years at typical prices, and $1,150 a year less to run.

- Verdict: **heat pump ahead at any quote**
- Heat pump yearly running cost vs. a new electric furnace and AC: $1,150 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $17,300 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/ky/kentucky-power/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/ky/kentucky-power.json

## Typical home: costs by option

1,800 sq ft, average insulation, heating with electricity, furnace and AC both need replacing.

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New electric furnace + new AC | $10,290 | $7,450–$13,330 | – | $1,810 | $37,400 |
| Heat pump (replaces both) | $11,270 | $7,840–$14,700 | – | $650 | $21,100 |
| High-efficiency cold-climate heat pump | $14,700 | $10,780–$19,600 | – | $520 | $22,500 |

## Inputs

- Electricity: Residential Service - RS tariff for Kentucky Power, effective 2026-04-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh. Typical-bill price 14.8¢/kWh, +5% vs. the Kentucky average of 14.0¢/kWh.
- Weather: Prestonsburg 3wsw, 4,705 heating and 1,022 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.41/therm (Kentucky winter average, EIA); propane $2.81/gallon; heating oil $5.87/gallon.
- Homes in this utility's Kentucky area heat with electricity 63%, gas 23%, propane 8%, other 5%, heating oil 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Kentucky HVAC installer wages (BLS).
- Rebates: not yet checked in Kentucky, so not included.

## Common questions

**Is a heat pump worth it for Kentucky Power customers?**
As of November 2026, for a typical 1,800 sq ft electrically heated home on Kentucky Power electricity rates in Kentucky that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $16,300 less than a new furnace and AC over 15 years at typical prices, and $1,150 a year less to run.

**How much does a heat pump cost to run on Kentucky Power's rates?**
About $650 a year for heating and cooling with the Heat pump (replaces both) option, against $1,810 for New electric furnace + new AC.

**What electricity price does this use?**
Electricity: Residential Service - RS tariff for Kentucky Power, effective 2026-04-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh.

## Method

Heating and cooling need from local weather, floor area and insulation; each option's efficiency (heat pumps lose
efficiency in the cold and use backup heat in cold months) turns that into kWh and fuel; electricity is priced
through the utility's tariff; installed costs come from published ranges. Full method: https://meterwise.app/about/index.md

Estimates for a typical home, not a quote or financial advice.

## Other Kentucky utilities

- [Big Sandy Rural Elec Coop Corp](https://meterwise.app/ky/big-sandy-rural-elec-coop-corp/heat-pump-vs-furnace/index.md)
- [Blue Grass Energy Coop Corp](https://meterwise.app/ky/blue-grass-energy-coop-corp/heat-pump-vs-furnace/index.md)
- [Cumberland Valley Electric, Inc.](https://meterwise.app/ky/cumberland-valley-electric-inc/heat-pump-vs-furnace/index.md)
- [Farmers Rural Electric Coop Corp](https://meterwise.app/ky/farmers-rural-electric-coop-corp/heat-pump-vs-furnace/index.md)
- [City of Frankfort](https://meterwise.app/ky/city-of-frankfort/heat-pump-vs-furnace/index.md)
- [Grayson Rural Electric Coop Corp](https://meterwise.app/ky/grayson-rural-electric-coop-corp/heat-pump-vs-furnace/index.md)
- [Inter County Energy Coop Corp](https://meterwise.app/ky/inter-county-energy-coop-corp/heat-pump-vs-furnace/index.md)
- [Jackson Energy Coop Corp](https://meterwise.app/ky/jackson-energy-coop-corp/heat-pump-vs-furnace/index.md)
- [Jackson Purchase Energy Corporation](https://meterwise.app/ky/jackson-purchase-energy-corporation/heat-pump-vs-furnace/index.md)
- [Kenergy Corp](https://meterwise.app/ky/kenergy-corp/heat-pump-vs-furnace/index.md)
- [Kentucky Utilities](https://meterwise.app/ky/kentucky-utilities/heat-pump-vs-furnace/index.md)
- [Louisville Gas & Electric Co](https://meterwise.app/ky/louisville-gas-and-electric-co/heat-pump-vs-furnace/index.md)
- [All Kentucky utilities](https://meterwise.app/ky/index.md)

## Cite this page

MeterWise, "Heat pump vs. electric furnace and AC on Kentucky Power rates (KY)", updated 2026-11-10, https://meterwise.app/ky/kentucky-power/heat-pump-vs-furnace/. Data licensed CC BY 4.0.